IRS Letter 96C is the form they use to respond to inquiries about your Economic Impact Payment or Recovery Rebate Credit. There are several possible answers the IRS may give you in this letter.
Table of Contents
Why did I get IRS Letter 96C?
If you received Letter 96C, you either contacted the IRS or your congressional office. According to IRS procedures, they also should have made two attempts to call you.
Letter 96C explains why you’re not eligible for the Economic Impact Payment or what happened to your payment.
What do I do after I got Letter 96C?
What you need to do depends on which response you received.
Taxpayer was claimed on another return.
Our records show that for tax year YYYY you were claimed as a dependent on another tax return. Dependents are not eligible for the Economic Impact Payment (EIP). You should refer to the Recovery Rebate Credit on the 2020 tax return to determine eligibility for any amounts not received under the EIP.
If you believe you should not have been claimed as a dependent, you will need to contact the IRS. The process may be easier if you convince the person who should not have claimed you to file an amended return that does not claim you as a dependent.
Checked the box indicating someone can claim them as a dependent.
Our records show on the YYYY tax return you checked the box someone can claim you as a dependent. Dependents are not eligible for the Economic Impact Payment (EIP). You should refer to the Recovery Rebate Credit on the 2020 tax return to determine eligibility for any amounts not received under the EIP.
If no one claimed you as a dependent, file an amended tax return without the box checked. If someone claimed you as a dependent, see above.
AGI phase out
Our records show your Economic Impact Payment (EIP) was calculated using the YYYY tax return. You are not eligible for the EIP because your adjusted gross income exceeds the phase out limitation of $XXXX. The phase out is 5% of the amount that exceeds the limitation. You should refer to the Recovery Rebate Credit on the 2020 tax return to determine eligibility for amounts not received under the EIP.
Review your tax return for accuracy and file an amended return if needed.
Undeliverable paper check returned
The Economic Impact Payment (EIP), issued as a paper check, was returned undeliverable. The EIP will be/was reissued as a paper check, to the address listed in the signed privacy release. We input a change of address to update the address of record. You should receive the check within 3-4 weeks in the amount of $XXXX. If the check is not received, you should refer to the Economic Impact Payment Information Center at IRS.GOV or call 800-919-9835 M-F 7:00 a.m.–7:00 p.m. local time.
Try to follow the online process as much as you can. It has been next to impossible to get through to the IRS by phone, and there are no other ways to reach them about this.
Debit card issued but TP inquiry indicates they’ve not received it or, may be unaware EIP was issued as debit card
Our records show the Economic Impact Payment (EIP) was issued on 05/22/2020 as a debit card, for the amount of $XXXX. If the debit card has not been received, you should contact MetaBank at 800-240-8100, or at eipcard.com.
The IRS sent some payments by a third-party debit card and considers you to have received your payment if this bank has your money.
General message for issues with planned adjustments based on programming (not manual adjustments)
An error was made when calculating the Economic Impact Payment (EIP) and we are working on a recovery to correct the impacted accounts. The recovery will include recalculating the EIP and, if applicable, refunding the recalculated amount. You do not need to take an action. IRS plans to address this issue by mid to late summer and will update the FAQ when we can provide a more specific date. You should refer to the Recovery Rebate Credit on the 2020 tax return to determine eligibility for any amounts not received under the EIP.
If you received this response about your 2020 tax return, contact the IRS immediately as this should have been already resolved. If you receive this response about your 20221 tax return, check back for updates.
IRS Letter 96C answers your inquiry about your Economic Impact Payment or Recovery Rebate Credit. If you still have questions about how to get your payment or your eligibility, chat with a tax professional now.